Stock Traders Purchase High Volume of Ares Capital Put Options (NASDAQ:ARCC)

Ares Capital Co. (NASDAQ:ARCC) was the recipient of unusually large options trading on Wednesday. Stock investors purchased 27,969 put options on the company. This represents an increase of approximately 370% compared to the average volume of 5,947 put options.

Ares Capital Stock Performance

Shares of NASDAQ ARCC traded down $0.30 during mid-day trading on Wednesday, reaching $23.25. 4,079,716 shares of the company’s stock were exchanged, compared to its average volume of 4,019,696. The firm has a 50-day moving average price of $22.19 and a two-hundred day moving average price of $21.40. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.29 and a quick ratio of 1.29. Ares Capital has a 52 week low of $19.32 and a 52 week high of $23.56. The firm has a market capitalization of $15.02 billion, a price-to-earnings ratio of 8.94 and a beta of 1.00.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, October 30th. The investment management company reported $0.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.59 by ($0.01). Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The firm had revenue of $755.00 million during the quarter, compared to analysts’ expectations of $770.45 million. During the same quarter in the prior year, the company earned $0.59 earnings per share. The business’s revenue for the quarter was up 15.3% compared to the same quarter last year. Analysts predict that Ares Capital will post 2.36 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on ARCC shares. StockNews.com raised Ares Capital from a “sell” rating to a “hold” rating in a research note on Tuesday, November 12th. Wells Fargo & Company upped their price objective on Ares Capital from $23.00 to $24.00 and gave the stock an “overweight” rating in a research report on Wednesday. Finally, B. Riley upped their price objective on Ares Capital from $21.00 to $22.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Three research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $22.43.

Hedge Funds Weigh In On Ares Capital

Hedge funds have recently modified their holdings of the company. Cyndeo Wealth Partners LLC lifted its holdings in Ares Capital by 2.3% in the 4th quarter. Cyndeo Wealth Partners LLC now owns 19,148 shares of the investment management company’s stock worth $419,000 after purchasing an additional 430 shares in the last quarter. JBR Co Financial Management Inc raised its holdings in Ares Capital by 1.5% during the 3rd quarter. JBR Co Financial Management Inc now owns 33,047 shares of the investment management company’s stock valued at $692,000 after buying an additional 500 shares during the period. Onyx Bridge Wealth Group LLC raised its stake in shares of Ares Capital by 1.2% in the third quarter. Onyx Bridge Wealth Group LLC now owns 43,609 shares of the investment management company’s stock valued at $913,000 after acquiring an additional 531 shares during the period. Centaurus Financial Inc. raised its stake in shares of Ares Capital by 3.9% in the second quarter. Centaurus Financial Inc. now owns 14,428 shares of the investment management company’s stock valued at $301,000 after acquiring an additional 542 shares during the period. Finally, Western Financial Corp CA raised its stake in shares of Ares Capital by 2.2% in the fourth quarter. Western Financial Corp CA now owns 26,387 shares of the investment management company’s stock valued at $578,000 after acquiring an additional 564 shares during the period. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital Company Profile

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.